DAYTON, Ohio, Oct. 28 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board: ADVC - News), a provider of Internet-based business-to-business electronic commerce services, today announced financial and operating results for the quarter ending September 30, 2004.
For the third quarter of 2004 the Company reported revenues of $920,038, a 21% increase over revenues of $759,865 in the third quarter of 2003. The increase in revenue was the result of continued growth and market acceptance of the Company's internet-based electronic commerce subscription services.
Net income for the quarter was $120,628, or $.02 per share, compared to $108,142, or $.02 per share for the same period in 2003. The third quarter of 2004 marks the fifth consecutive profitable quarter for Advant-e Corporation.
For the nine months ending September 30, 2004 the Company reported revenues of $2,610,655, a 23% increase over revenues of $2,124,351 in the same period in 2003. Net income for the period in 2004 was $342,212, or $.05 per share, compared to $32,339, or $.01 per share in the 2003 period.
Jason K. Wadzinski, President and CEO of Advant-e, stated, "I am pleased to report that we have achieved 22% pre-tax profitability and record revenues in the third quarter of 2004. Financially, we are stronger than we have ever been due to the fact that we are debt free and are adding to our cash balance. Our efforts to expand our solutions outside of the retail supply chain market are beginning to gain traction. I believe that our recurring revenue model, the exceptional value proposition we offer our targeted customers, and the recent promotion of Mike Bevis to President of Edict Systems will lead to continued growth for our company."
ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 2004 2003 Revenue $920,038 759,865 2,610,655 2,124,351 Cost of revenue 309,224 268,342 913,705 877,506 Gross margin 610,814 491,523 1,696,950 1,246,845 Marketing, general and administrative expenses 408,186 322,893 1,122,158 1,055,711 Operating income 202,628 168,630 574,792 191,134 Interest - 33,003 2,180 139,365 Income before taxes 202,628 135,627 572,612 51,769 Income taxes 82,000 27,485 230,400 19,430 Net income $120,628 108,142 342,212 32,339 Basic earnings per common share $0.02 0.02 0.05 0.01 Diluted earnings per common share $0.02 0.02 0.05 0.01 Weighted average common shares outstanding 6,244,917 5,661,002 6,244,917 5,661,002 Weighted average common shares outstanding, assuming dilution 6,634,107 5,908,532 6, 628,571 5,745,797 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) September 30, December 31, 2004 2003 Assets Current Assets Cash and cash equivalents $698,556 216,448 Accounts receivable, net 245,310 215,895 Prepaid expenses and deposit 23,026 16,187 Deferred income taxes 57,000 266,400 Total current assets 1,023,892 714,930 Software development costs, net 347,439 481,678 Property and equipment, net 282,646 168,687 Total assets $1,653,977 $1,365,295 Liabilities and Shareholders' Equity Current liabilities Accounts payable $32,396 72,172 Accrued salaries and other expenses 130,588 71,867 Deferred revenue 107,760 90,931 Notes payable - 94,965 Total current liabilities 270,744 329,935 Long-term liabilities Deferred income taxes 177,000 156,000 Total liabilities 447,744 485,935 Shareholders' equity Common stock, $.001 par value; 20,000,000 shares authorized; 6,244,917 outstanding 6,245 6,245 Paid-in capital 1,476,088 1,491,427 Accumulated deficit (276,100) (618,312) Total shareholders' equity 1,206,233 879,360 Total liabilities and shareholders' equity $1,653,977 1,365,295 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2004 2003 Cash flows from operating activities Net income $342,212 32,339 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 57,238 36,660 Amortization of software development costs 250,828 214,942 Deferred income taxes 230,400 19,430 Amortization of note discount resulting from valuation of warrants and beneficial conversion features - 45,379 Increase (decrease) in cash arising from changes in assets and liabilities: Accounts receivable (29,415) (37,200) Prepaid expenses (6,839) 26,455 Accounts payable (39,776) (98,357) Accrued salaries, interest and other expenses 58,721 (164) Deferred revenue 16,829 20,343 Net cash provided by operating activities 880,198 259,827 Cash flows from investing activities Purchases of equipment (171,197) (28,181) Software development costs (116,589) (110,757) Net cash used in investing activities (287,786) (138,938) Cash flows from financing activities Payments on notes (94,965) (35,373) Payments of direct costs of securities registration (15,339) - Net cash used in financing activities (110,304) (35,373) Net increase in cash and cash equivalents 482,108 85,516 Cash and cash equivalents, beginning of period 216,448 98,740 Cash and cash equivalents, end of period $698,556 184,256 Supplemental disclosures of cash flow information Interest paid $3,014 137,804
Additional information about Advant-e Corporation can be found at www.Advant-e.com and www.edictsystems.com or by contacting investor relations at (937) 429-4288. The company's email is info@edictsystems.com.